London, 16 September (Argus) — Indian steelmaker Jindal Steel will enter negotiations with German producer ThyssenKrupp for the acquisition of its European steel arm.
Jindal confirmed it has submitted a non-binding offer for ThyssenKrupp Steel Europe, with plans to transform it into ‘Europe’s largest integrated low-emission steelmaker’.
“The plan would secure steel production in Germany and create new business opportunities,” Jindal said.
ThyssenKrupp is currently in the process of downsizing its production capacity and staff, after it reached an agreement with workers’ union IG Metall in July.
The Indian steelmaker added that as part of its offer it pledges to complete the DRI project in Duisburg and establish additional electric arc furnace (EAF) capacity with a financial commitment of over €2bn.
This contrasts Luxembourg-based steelmaker ArcelorMittal’s position, after it said it would not proceed with previously announced direct-reduced iron (DRI) and EAF decarbonisation projects at Bremen and Eisenhuttenstadt due to concerns related to economic feasibility.
ThyssenKrupp ceded last year 20pc of its stake in its European steel arm to German infrastructure investor EP Corporate Group (EPCG). Talks continued as EPCG looked to acquire a further 30pc to form a 50:50 joint venture.
The steelmaker is also looking to sell its 50pc stake in the German producer Huttenwerke Krupp Mannesmann (HKM). ThyssenKrupp said this remains the preferred option after it announced the termination of its supply contact with HKM in April.
By Carlo Da Cas
